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| A technique in which a seller deeds property to a buyer for a consideration,
and the buyer simultaneously leases the property back to the seller. |
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| A property occupied part-time by a person in addition to his or her primary
residence. |
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| A mortgage that has a lien position subordinate to the first mortgage.
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| An informal market where lenders and investors buy and sell existing mortgages.
Government-sponsored entities and private investors buy mortgages from lenders
who use the proceeds to make additional loans. |
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| A loan that is backed by collateral. If the borrower defaults, the lender
can sell the collateral to satisfy the debt. |
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| The property that will be pledged as collateral for a loan. If the borrower
defaults, the lender can sell the collateral to satisfy the debt. |
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| An interest a lender takes in the borrower's property to assure repayment
of a debt. If the borrower defaults, the lender can sell the collateral
to satisfy the debt. |
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| An agreement in which the owner of a property provides financing, often
in combination with an assumable mortgage. See owner financing. |
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| An organization that collects principal and interest payments from borrowers
and manages borrowers' tax and insurance escrow accounts. A mortgage banker
is often paid a fee to service mortgages that have been purchased by an
investor in the secondary mortgage market. |
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| The collection of principal and interest payments from borrowers and management
of borrowers' tax and insurance escrow accounts. |
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| See closing. |
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| See HUD-1 settlement statement. |
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| A sale of a house in which the proceeds fall short of what the owner
still owes on the mortgage. Many lenders will
agree to accept the proceeds of a short sale and forgive the rest of what is
owed on the mortgage when the owner cannot make the mortgage payments. By
accepting a short sale, the lender can avoid a lengthy and costly
foreclosure, and the owner is able to pay off
the loan for less than what he owes. See also deed
in lieu (or foreclosure).
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| A residential structure designed to include one dwelling. |
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| An account that is established for rehabilitation mortgages to hold the
funds needed for the rehabilitation work so they can be disbursed from time
to time as particular portions of the work are completed. |
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| A Home Equity loan originated without obtaining a Countrywide first mortgage
at the same time. |
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| See initial interest rate. |
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| A housing development that is created by dividing a tract of land into
individual lots for sale or lease. |
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| Any mortgage or other lien that has a priority that is lower than that
of the first mortgage. The subordinate loan has a claim to payment in a
foreclosure only after the first mortgage is paid. |
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| An alternative financing option known as the Community Seconds® mortgage
for low- and moderate-income households. An investor purchases a first mortgage
that has a subsidized second mortgage behind it. The second mortgage may
be issued by a state, county, or local housing agency, foundation, or nonprofit
corporation. Payment on the second mortgage is often deferred and carries
a very low interest rate (or no interest rate). Part or all of the second
mortgage debt may be forgiven depending on how long the buyer remains in
the home. |
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| A drawing or map showing the precise legal boundaries of a property, the
location of improvements, easements, rights of way, encroachments, and other
physical features. |
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| Contribution to the construction or rehabilitation of a property in the
form of labor or services performed personally by the owner. |
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